Comparative analysis of natural gas storage legal and contractual ‎frameworks in Iran and England ‎

Document Type : Research Paper

Authors

1 Department of Law, Energy, and International Trade Law Department, Faculty of Law, College of ‎Farabi University of Tehran, Qom, Iran‎

2 ‎Department of Oil and Gas Law, Energy and International Trade Law Department Faculty of Law, ‎College of Farabi University of Tehran, Qom, Iran‎

Abstract

Energy security is one of the substantial objectives of the countries’ policy-making and regulatory regimes. Therefore, gas storage has been paid attention to as a tool for developing security and responding to customers’ need in the case of demand surge in the different countries. Moreover, due to strategic reasons and to decrease the impacts of the political situation of the gas-producing countries, utilizing storage mechanisms has been noticeably welcomed by the gas-importing countries. Nevertheless, specific laws and regulations of gas storage which contain its exclusive requirements have yet to be enacted and set out.
The storage arrangements could be developed under different mechanisms including contracts. In Iran, Build, Operate, and Transfer (BOT) contracts are being used as the storage project granting instruments with retaining the governmental ownership; however, the licensing system containing transfer of ownership to the private sector along with the legal basis for the third party access is a prominent arrangement for such projects in England. Despite flaws and deficiencies in the relevant Iranian contractual arrangements, the more incentivized investment could be achieved with focusing on the storage activities and operation status, utilizing the produced hydrocarbons (gas) and the legal options and tools based on which the transfer of the ownership to investors is possible including title to storage installations.

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Main Subjects

References

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Comparative Law Review
Volume 15, Issue 2
Autumn & Winter 2024-2025
December 2024
Pages 655-682

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